Layoffs at March Networks slash 7% of global workforce

Elizabeth
Elizabeth Howell
Send to a friend

Send this article to a friend.

On the eve of announcing its fourth-quarter results, March Networks (TSX:MN) confirmed Tuesday that it recently laid off seven per cent of its global workforce – a total of 20 employees out of about 250 people.

Peter Strom, CEO of March Networks. (Darren Brown)

"It consists of strategy or transitioning the March business into more sales and marketing activities, and it reflects how the business is moving more into a software sphere," said Simon Gwatkin of the company's investor relations, when contacted by OBJ.

Mr. Gwatkin did not release any local numbers or what sectors were affected, although a source told OBJ that at least one Ottawa engineering employee was downsized.

As of February 2010, after several rounds of layoffs, March employed 160 people in Ottawa, according to the latest edition of Ottawa Technology Magazine.

Also in February, March released its Q3 results and said the weak showing was due to poor "sales visibility", particularly in the U.S. and Dubai, and added the company had not met investor earning expectations for the first nine months of its fiscal year.

At the time, the Ottawa-based company -- which deals in digital surveillance -- said it had revenues of $20 million for the quarter ended Jan. 31.

This was a decrease of 15.2 per cent from Q1 2008 and broadened the firm's net loss from $3.52 million or 20 cents a share to $1.26 million or seven cents a share.

“In spite of the economic challenges and deferred capital spending within many of our vertical markets, the company has experienced year-to-date revenue growth in the commercial industrial market,” stated March Networks CEO Peter Strom at the time.

“We continue to invest in R&D and technologies that address the evolving needs of customers in our key vertical markets in order to support revenue growth.”

Q4 financials will be released at the end of trading day on Wednesday.

Organizations: March Networks Corp., Ottawa Technology Magazine, TSX

Geographic location: Ottawa, United States, RD

  • 1
  • 2
  • 3
  • 4
  • 5

Thanks for voting!

Top of page

Comments

Comments